Professional Documents
Culture Documents
the Economy
Presentation by
Vikram Sampat
3
What is GDP
GDP $ trillion
World $ 69.7 trillion
16 14.2
14
12
30
Source: Wikipedia
6
Consumption &
Savings
Two choices about money -
consume or save
It is the same for an economy
Consumption -
Current benefit
Directly leads to income
Savings
Canalize money to industry
Leads to asset creation
Increases capital goods demand
Generates future income
As economies mature
USA
India - 2009
Growing population
Growing per capita consumption
High savings rate
Favourable demographics
China
Very low consumption
Growing per capita consumption
High savings rate
Fnfavourable demographics
15
Concept of ICOR
19
Savings & Investments
24
Concept of equity investments
Primary markets
Company
Lead manager and other intermediaries
Investors
Secondary markets
Stock brokers
Investors
Analysts
Stock exchanges (BSE / NSE)
Depository and Depository participant (NSDL)
Regulator (SEBI)
94
98
04
08
90
92
96
00
02
06
19
19
20
20
19
19
19
20
20
20
Annualized turnover of $ 82 Total World Market capitalisation World GDP
trillion in 2009
$ 113 trillion in 2008 Average daily turnover
53 large & active stock (USD trillions)
exchanges globally Equity – 0.25
Forex – 4.0
Most important financial market globally Bonds – 0.03
Global equity markets